Tax Incentive

Property Tax Exemption for Renewable Energy Systems

Beginning in October 2014, “Class I renewable energy systems” used for commercial and/or industrial purposes are allowed a property tax exemption. To qualify for this exemption, an assessor or board of assessors must file an application before November 1st in the applicable assessment year. 

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Property Tax Exemption

Arizona does not tax energy efficiency components, renewable energy equipment, and combined heat and power systems as property. Arizona Revised Statute 42-11054, which details this exemption, specifies that renewable energy equipment includes equipment used to produce energy primarily for on-site consumption from renewable resources, including

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Corporate Renewable Energy Tax Credit

This tax credit applies to investments in new renewable energy facilities that produce energy for self-consumption, so long as the power is used primarily by international operations centers. Arizona Revised Statute 43-1164.05 describes the eligibility requirements for this tax credit program and the eligible types

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Active Solar Energy System Exclusion

This is a property tax exclusion for the installation of active solar energy systems. This differs from an exemption in that the addition of the system’s value to that of the real property is never assessed in the first place. The solar energy system can

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Sales and Use Tax for Alternative Energy and Advanced Transportation

This is a sales and use tax exemption for various processes (e.g., advanced manufacturing, advanced transportation). Of particular interest is “alternative sources”, which broadly include technologies used for renewable electrical generation facilities, distributed generation, energy storage technologies, and other technologies that reduce the need for

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